Yahoo Finance Swiss Life Holding AG's (VTX:SLHN) CEO Will Probably Have Their Compensation Approved By Shareholders
Key Insights
Swiss Life Holding will host its Annual General Meeting on 28th of April
CEO Patrick Frost's total compensation includes salary of CHF1.50m
The total compensation is similar to the average for the industry
Swiss Life Holding's total shareholder return over the past three years was 114% while its EPS grew by 10% over the past three years
It would be hard to discount the role that CEO Patrick Frost has played in delivering the impressive results at Swiss Life Holding AG (VTX:SLHN) recently. Coming up to the next AGM on 28th of April, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Swiss Life Holding
How Does Total Compensation For Patrick Frost Compare With Other Companies In The Industry?
Our data indicates that Swiss Life Holding AG has a market capitalization of CHF18b, and total annual CEO compensation was reported as CHF4.3m for the year to December 2022. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF1.5m.
On comparing similar companies in the Swiss Insurance industry with market capitalizations above CHF7.1b, we found that the median total CEO compensation was CHF3.8m. So it looks like Swiss Life Holding compensates Patrick Frost in line with the median for the industry. What's more, Patrick Frost holds CHF20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CHF1.5m | CHF1.5m | 35% |
Other | CHF2.8m | CHF2.8m | 65% |
Total Compensation | CHF4.3m | CHF4.3m | 100% |
Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. Although there is a difference in how total compensation is set, Swiss Life Holding more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Swiss Life Holding AG's Growth
Swiss Life Holding AG's earnings per share (EPS) grew 10% per year over the last three years. Its revenue is down 3.9% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Swiss Life Holding AG Been A Good Investment?
Boasting a total shareholder return of 114% over three years, Swiss Life Holding AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Swiss Life Holding that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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